Fluor Reports Fourth Quarter and Full Year 2022 Results
Fluor Corporation (NYSE: FLR) revealed significant growth in its financial results for the year ended December 31, 2022. Full-year new awards doubled to $19.8 billion, with an ending backlog that increased by 25% to $26 billion. The company's revenue reached $13.7 billion, with net income from continuing operations at $145 million or $0.73 per diluted share. Adjusted earnings per diluted share were $0.82. Fluor's cash and marketable securities stood at $2.6 billion, while outstanding debt was less than $1 billion, reflecting a strengthened capital structure.
- New awards increased to $19.8 billion, doubling from the previous year.
- Backlog grew by 25% to $26 billion, indicating strong future revenue potential.
- Revenue for 2022 was $13.7 billion, maintaining profitability.
- Net income from continuing operations was $145 million or $0.73 per diluted share.
- Strong cash and marketable securities balance of $2.6 billion.
- Outstanding debt under $1 billion after the retirement of 2023 Euro Notes.
- Average tax rate was 70%, affecting net income due to global earnings mix.
-
Doubled full year new awards to
$19.8 billion 87% reimbursable - Grew prospect pipeline with significant opportunities across all three segments
-
Increased backlog by
25% over last year to$26 billion 63% reimbursable -
Improved execution, new awards and high quality of earnings driving initial 2023 adjusted EBITDA guidance of
$450 $600 million -
Strengthened capital structure with year-end cash and marketable securities balance of
$2.6 billion $1 billion
“In 2022, we demonstrated our resilience, continued to grow and remained steadfast in taking actions to achieve positive results,” said
Full year new awards were
1 Non-GAAP Financial Measure. We are not providing forward-looking guidance for
2Non-GAAP Financial Measure. See “Non-GAAP Financial Measures” for additional information.
Fourth Quarter Results
Fourth quarter 2022 results include net earnings from continuing operations attributable to Fluor of
Outlook
Since
- Drive growth across our portfolio, by growing markets outside of the traditional oil and gas sector, including energy transition, advanced technology and life sciences, high-demand metals, infrastructure and nuclear and civil, defense and intelligence for governments;
- Pursue contracts with fair and balanced commercial terms, by focusing on more favorable, risk-adjusted agreements that reward Fluor for the value it delivers;
- Reinforce financial discipline, by generating predictable cash flow and earnings to maintain a solid balance sheet; and
- Foster a high-performance culture with purpose, by advancing our diversity, equity and inclusion efforts and promoting social progress and sustainability. Importantly, this also means excellence in execution, which brings value to all our stakeholders.
These strategic priorities have set the foundation for Fluor to deliver significant results over the next few years. Based on the volume of new awards received across all three segments over the past year, the reimbursable concentration of the existing backlog and prospect pipeline, coupled with the expected performance of the remaining legacy projects, the company is establishing the following guidance for 2023 and 2026:
|
2023 |
2026 |
Adjusted EBITDA Guidance |
|
|
Adjusted EPS Guidance |
|
|
Adjusted EPS and adjusted EBITDA guidance exclude items similar to those outlined in the reconciliation table at the end of this release.
Business Segments
Energy Solutions reported a profit of
Urban Solutions reported a profit of
Mission Solutions reported a profit of
The Other segment, which includes NuScale, Stork and the remaining AMECO business, reported a full year loss of
Conference Call
Fluor will host a conference call at
A replay of the webcast will be available for 30 days. A replay of the call will be available by telephone for one week.
Non-GAAP Financial Measures
This news release contains discussions of consolidated segment profit, adjusted net earnings, adjusted EPS and adjusted EBITDA that are non-GAAP financial measures under
About
Forward-Looking Statements: This release may contain forward-looking statements (including without limitation statements to the effect that the Company or its management "will," "believes," "expects," “anticipates,” "plans" or other similar expressions). These forward-looking statements, including statements relating to strategic and operation plans, future growth, new awards, backlog, earnings and the outlook for the company’s business.
Actual results may differ materially as a result of a number of factors, including, among other things, the cyclical nature of many of the markets the Company serves; the Company's failure to receive new contract awards; cost overruns, project delays or other problems arising from project execution activities, including the failure to meet cost and schedule estimates; intense competition in the industries in which we operate; failure of our joint venture or other partners to perform their obligations; the failure of our suppliers, subcontractors and other third parties to adequately perform services under our contracts; cyber-security breaches; possible information technology interruptions; foreign economic and political uncertainties; client cancellations of, or scope adjustments to, existing contracts; the inability to hire and retain qualified personnel; failure to maintain safe worksites and international security risks; risks or uncertainties associated with events outside of our control, including weather conditions, pandemics, public health crises, political crises or other catastrophic events; the use of estimates and assumptions in preparing our financial statements; client delays or defaults in making payments; uncertainties, restrictions and regulations impacting our government contracts; the potential impact of certain tax matters; the Company's ability to secure appropriate insurance; liabilities associated with the performance of nuclear services; foreign currency risks; the loss of one or a few clients that account for a significant portion of the Company's revenues; failure to adequately protect intellectual property rights; asset impairments; climate change and related environmental issues; increasing scrutiny with respect to sustainability practices; risks related to our indebtedness; the availability of credit and restrictions imposed by credit facilities, both for the Company and our clients, suppliers, subcontractors or other partners; possible limitations on bonding or letter of credit capacity; failure to obtain favorable results in existing or future litigation and regulatory proceedings, dispute resolution proceedings or claims, including claims for additional costs; failure by us or our employees, agents or partners to comply with laws; new or changing legal requirements, including those relating to environmental, health and safety matters; failure to successfully implement our strategic and operational initiatives; risks arising from the inability to successfully integrate acquired businesses; risks related to provisions of our convertible preferred stock; and restrictions on possible transactions imposed by our charter documents and
Additional information concerning these and other factors can be found in the Company's public periodic filings with the
| SUMMARY OF FINANCIALS AND |
|||||||||||||||||||||||||
| THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
||||||||||||||||||||||||
| (in millions) | 2022 |
2021 |
2022 |
2021 |
|||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||
| Energy Solutions | $ |
1,775 |
|
$ |
1,281 |
|
$ |
5,872 |
|
$ |
4,956 |
|
|||||||||||||
| Urban Solutions |
|
975 |
|
|
996 |
|
|
3,921 |
|
|
4,416 |
|
|||||||||||||
| Mission Solutions |
|
509 |
|
|
880 |
|
|
2,289 |
|
|
3,063 |
|
|||||||||||||
| Other |
|
450 |
|
|
465 |
|
|
1,662 |
|
|
1,721 |
|
|||||||||||||
| Total revenue | $ |
3,709 |
|
$ |
3,622 |
|
$ |
13,744 |
|
$ |
14,156 |
|
|||||||||||||
| Segment profit (loss) $ and margin % | |||||||||||||||||||||||||
| Energy Solutions |
|
124 |
|
7.0 |
% |
|
67 |
|
5.2 |
% |
|
301 |
|
5.1 |
% |
|
250 |
|
5.0 |
% |
|||||
| Urban Solutions |
|
34 |
|
3.5 |
% |
|
59 |
|
5.9 |
% |
|
3 |
|
0.1 |
% |
|
38 |
|
0.9 |
% |
|||||
| Mission Solutions |
|
20 |
|
3.9 |
% |
|
38 |
|
4.3 |
% |
|
136 |
|
5.9 |
% |
|
155 |
|
5.1 |
% |
|||||
| Other |
|
(4 |
) |
NM |
|
|
(20 |
) |
NM |
|
|
(13 |
) |
NM |
|
|
(28 |
) |
NM |
|
|||||
| Total segment profit (loss) $ and margin % |
|
174 |
|
4.7 |
% |
|
144 |
|
4.0 |
% |
|
427 |
|
3.1 |
% |
|
415 |
|
2.9 |
% |
|||||
| G&A |
|
(89 |
) |
|
(82 |
) |
|
(237 |
) |
|
(226 |
) |
|||||||||||||
| Impairment |
|
(40 |
) |
|
(137 |
) |
|
24 |
|
|
(290 |
) |
|||||||||||||
| Gain (loss) on pension settlement |
|
42 |
|
|
(198 |
) |
|
42 |
|
|
(198 |
) |
|||||||||||||
| Foreign currency gain (loss) |
|
(27 |
) |
|
(9 |
) |
|
25 |
|
|
(13 |
) |
|||||||||||||
| Interest income (expense), net |
|
31 |
|
|
(10 |
) |
|
35 |
|
|
(73 |
) |
|||||||||||||
| Earnings (loss) from Cont Ops attributable to NCI |
|
(41 |
) |
|
16 |
|
|
(72 |
) |
|
39 |
|
|||||||||||||
| Earnings (loss) from Cont Ops before taxes |
|
50 |
|
|
(276 |
) |
|
244 |
|
|
(346 |
) |
|||||||||||||
| Income tax (expense) benefit |
|
(82 |
) |
|
14 |
|
|
(171 |
) |
|
(20 |
) |
|||||||||||||
| Net earnings (loss) from Cont Ops |
|
(32 |
) |
|
(262 |
) |
|
73 |
|
|
(366 |
) |
|||||||||||||
| Less: Net earnings (loss) from Cont Ops attributable to NCI |
|
(41 |
) |
|
16 |
|
|
(72 |
) |
|
39 |
|
|||||||||||||
| Net earnings (loss) from Cont Ops attributable to Fluor |
|
9 |
|
|
(278 |
) |
|
145 |
|
|
(405 |
) |
|||||||||||||
| Less: Dividends on CPS |
|
10 |
|
|
10 |
|
|
39 |
|
|
24 |
|
|||||||||||||
| Net earnings (loss) from Cont Ops available to Fluor common stockholders | $ |
(1 |
) |
$ |
(288 |
) |
$ |
106 |
|
$ |
(429 |
) |
|||||||||||||
| New awards | |||||||||||||||||||||||||
| Energy Solutions | $ |
916 |
|
$ |
399 |
|
$ |
6,511 |
|
$ |
3,313 |
|
|||||||||||||
| Urban Solutions |
|
3,329 |
|
|
261 |
|
|
6,799 |
|
|
2,721 |
|
|||||||||||||
| Mission Solutions |
|
36 |
|
|
24 |
|
|
5,347 |
|
|
2,718 |
|
|||||||||||||
| Other |
|
316 |
|
|
305 |
|
|
1,158 |
|
|
1,218 |
|
|||||||||||||
| Total new awards | $ |
4,597 |
|
$ |
989 |
|
$ |
19,815 |
|
$ |
9,970 |
|
|||||||||||||
| New awards related to projects located outside of the |
|
46 |
% |
|
61 |
% |
|||||||||||||||||||
| (in millions) |
|
||||||||||||||||||||||||
| Backlog | |||||||||||||||||||||||||
| Energy Solutions | $ |
9,134 |
|
$ |
9,324 |
|
|||||||||||||||||||
| Urban Solutions |
|
9,900 |
|
|
7,048 |
|
|||||||||||||||||||
| Mission Solutions |
|
5,666 |
|
|
2,562 |
|
|||||||||||||||||||
| Other |
|
1,349 |
|
|
1,866 |
|
|||||||||||||||||||
| Total backlog | $ |
26,049 |
|
$ |
20,800 |
|
|||||||||||||||||||
| Backlog related to projects located outside of the |
|
49 |
% |
|
65 |
% |
|||||||||||||||||||
| Backlog related to lump-sum projects |
|
37 |
% |
|
59 |
% |
|||||||||||||||||||
| (1) Certain amounts in tables may not total or agree back to the financial statements due to immaterial rounding differences. | |||||||||||||||||||||||||
| RECONCILIATION OF |
|||||||||||||||
| THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
||||||||||||||
| (In millions, except per share amounts) | 2022 |
2021 |
2022 |
2021 |
|||||||||||
| Net earnings (loss) from Cont Ops available to Fluor | $ |
9 |
|
$ |
(278 |
) |
$ |
145 |
|
$ |
(405 |
) |
|||
| Less: Dividends on CPS |
|
(10 |
) |
|
(10 |
) |
|
(39 |
) |
|
(24 |
) |
|||
| Net earnings (loss) from Cont Ops available to Fluor common stockholders |
|
(1 |
) |
|
(288 |
) |
|
106 |
|
|
(429 |
) |
|||
| Less: Earnings from Stork and AMECO |
|
(12 |
) |
|
(3 |
) |
|
(37 |
) |
|
(21 |
) |
|||
| Less: Tax expense on Stork and AMECO |
|
(3 |
) |
|
2 |
|
|
(2 |
) |
|
(2 |
) |
|||
| Net earnings (loss) from core operations* |
|
(16 |
) |
|
(289 |
) |
|
67 |
|
|
(452 |
) |
|||
| Add (less): | |||||||||||||||
| Dividends on CPS | $ |
10 |
|
$ |
10 |
|
$ |
39 |
|
$ |
24 |
|
|||
| NuScale (profit) loss |
|
28 |
|
|
27 |
|
|
72 |
|
|
71 |
|
|||
| ICA Fluor embedded derivatives |
|
3 |
|
|
(3 |
) |
|
3 |
|
|
27 |
|
|||
| Tax expense (benefit) on ICA Fluor embedded derivatives |
|
(1 |
) |
|
1 |
|
|
(1 |
) |
|
(8 |
) |
|||
| (Gain) loss on pension settlement |
|
(42 |
) |
|
198 |
|
|
(42 |
) |
|
198 |
|
|||
| Tax benefit on pension settlement loss |
|
- |
|
|
(52 |
) |
|
- |
|
|
(52 |
) |
|||
| Impairment (2) |
|
43 |
|
|
137 |
|
|
(17 |
) |
|
290 |
|
|||
| Foreign currency (gain) loss |
|
27 |
|
|
9 |
|
|
(25 |
) |
|
13 |
|
|||
| Tax expense (benefit) on foreign currency |
|
(3 |
) |
|
(2 |
) |
|
1 |
|
|
(7 |
) |
|||
| Cost of debt extinguishment |
|
- |
|
|
- |
|
|
- |
|
|
20 |
|
|||
|
25 |
|
|
16 |
|
|
44 |
|
|
26 |
|
||||
| Adjusted Net Earnings | $ |
74 |
|
$ |
52 |
|
$ |
141 |
|
$ |
150 |
|
|||
| Diluted EPS available to Fluor common stockholders | $ |
(0.01 |
) |
$ |
(2.03 |
) |
$ |
0.73 |
|
$ |
(3.04 |
) |
|||
| Adjusted EPS | $ |
0.43 |
|
$ |
0.31 |
|
$ |
0.82 |
|
$ |
0.94 |
|
|||
| Weighted average diluted shares outstanding |
|
145 |
|
|
141 |
|
|
145 |
|
|
141 |
|
|||
| Assumed conversion of CPS |
|
27 |
|
|
27 |
|
|
27 |
|
|
17 |
|
|||
| Assumed issuance of shares under equity awards |
|
- |
|
|
2 |
|
|
- |
|
|
2 |
|
|||
| Adjusted weighted average diluted shares outstanding |
|
172 |
|
|
170 |
|
|
172 |
|
|
160 |
|
|||
| *Core operations excludes the results of our Stork business and remaining AMECO equipment business that no longer meet all of the requirements to be classified discontinued operations but that continue to be marketed for sale. | |||||||||||||||
| (1) Certain amounts in tables may not total or agree back to the financial statements due to immaterial rounding differences. | |||||||||||||||
| (2) Includes impairment of SNGT Russia and goodwill. | |||||||||||||||
| RECONCILIATION OF |
||||||||||||
| THREE MONTHS ENDED |
TWELVE MONTHS ENDED |
|||||||||||
| (in millions) | 2022 |
2021 |
2022 |
2021 |
||||||||
| Net earnings from Cont Ops attributable to Fluor | $ |
9 |
|
$ |
(278 |
) |
$ |
145 |
|
$ |
(405 |
) |
| Interest |
|
(31 |
) |
|
10 |
|
|
(35 |
) |
|
73 |
|
| Taxes |
|
82 |
|
|
(14 |
) |
|
171 |
|
|
20 |
|
| Depreciation & Amortization |
|
18 |
|
|
14 |
|
|
73 |
|
|
74 |
|
| EBITDA | $ |
78 |
|
$ |
(268 |
) |
$ |
354 |
|
$ |
(238 |
) |
| Adjustments: | ||||||||||||
| Other: NuScale, Stork and AMECO expenses |
|
2 |
|
|
19 |
|
|
10 |
|
|
23 |
|
| Energy Solutions: Embedded foreign currency derivative (gains)/losses |
|
3 |
|
|
(3 |
) |
|
3 |
|
|
27 |
|
| G&A: (Gain)/loss on pension settlement |
|
(42 |
) |
|
198 |
|
|
(42 |
) |
|
198 |
|
| G&A: Foreign currency (gain)/loss |
|
27 |
|
|
9 |
|
|
(25 |
) |
|
13 |
|
| G&A: Cost of debt extinguishment |
|
- |
|
|
- |
|
|
- |
|
|
20 |
|
| G&A: SEC Investigation and reserve for legacy legal claims |
|
25 |
|
|
16 |
|
|
44 |
|
|
26 |
|
| G&A: Impairment |
|
43 |
|
|
137 |
|
|
(17 |
) |
|
290 |
|
| Adjusted EBITDA | $ |
136 |
|
$ |
108 |
|
$ |
327 |
|
$ |
358 |
|
| (1) Certain amounts in tables may not total or agree back to the financial statements due to immaterial rounding differences. | ||||||||||||
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FAQ
What were Fluor's new awards for 2022?
How did Fluor's backlog change in 2022?
What was Fluor's revenue and net income for 2022?
What is Fluor's guidance for 2023 adjusted EBITDA?
What is Fluor's outstanding debt status?
